§33-16G-4. Duties of exchange; decrease in funding or invalidation
of the Federal Act.
(a) In carrying out the duties under this article, the
exchange shall:

(1) Consult with stakeholders, including but not limited to
consumers, carriers, producers, providers and advocates for hard to
reach populations; and

(2) Meet the following financial integrity requirements:

(A) Keep an accurate accounting of all activities, receipts
and expenditures and annually submit to the secretary, the
Governor, the commissioner and the Legislature a report concerning
such accountings;

(B) Fully cooperate with any investigation conducted by the
secretary pursuant to the secretary's authority under the Federal
Act and allow the secretary, in coordination with the Inspector
General of the United States Department of Health and Humans
Services, to:

(i) Investigate the affairs of the exchange;

(ii) Examine the properties and records of the exchange; and

(iii) Require periodic reports in relation to the activities
undertaken by the exchange; and

(C) In carrying out its activities under this article, not use
any funds intended for the administrative and operational expenses
of the exchange for staff retreats, promotional giveaways,
excessive executive compensation or promotion of federal or state legislative and regulatory modifications.

(b) (1) The implementation of the provisions of this article,
other than this subsection, section three of this article, and
section five of this article, shall be contingent on a
determination by the board that sufficient financial resources
exist or will exist in the fund, which determination shall be based
on, at a minimum:

(A) Financial projections identifying that sufficient
resources exist or will exist in the fund to implement the
exchange; and

(B) A comparison of the projected resources available to
support the exchange and the projected costs of activities required
by this article.

(2) In the event any portion of the Federal Act or of any
regulation or other guidance issued thereunder is legislatively or
judicially invalidated and rendered of no effect in this state, the
board shall immediately issue a bulletin setting forth its legal
opinion as to the effect of such legislative or judicial action on
the legal status of the corresponding provisions of such act,
regulation or guidance as set forth in this article or in rules
promulgated hereunder; the board shall also issue recommendations
to the Legislature for amendments to this article necessitated by
such judicial or legislative action.